The Case

Cripps v Talga Resources Ltd (2016)

Mr Cripps worked for Talga Resources Ltd (Talga) in Sweden for the entirety of his employment with Talga and was paid in the Swedish currency. Talga was a company registered in Australia.

Talga made Mr Cripps’ position redundant. Mr Cripps applied to the Western Australian Industrial Relations Commission (WAIRC) seeking payment of the $88,000 he alleged he was owed. Talga argued the WAIRC did not have jurisdiction to hear the claim.

The Verdict

The WAIRC held it did have jurisdiction to hear the claim as there was a sufficient connection with Australia in that:

• Talga was a company registered in Australia;
• Mr Cripps had signed the contract while residing in Australia;
• Mr Cripps was an Australian resident, which was referred to in the contract; and
• the governing law provision in the contract named Western Australia as the relevant jurisdiction.

The Lessons

Many employers believe that Australian employees who are deployed overseas have their employment governed by that country’s jurisdiction not Australian laws. However, the Fair Work Act 2009 (Cth) (FW Act) has extra-territorial application. Whether the FW Act applies depends on whether there is a sufficient connection with Australia.

Make sure your employment contracts contain a governing laws clause that stipulates the jurisdiction you want to apply to the employment contract. If there is a risk Australian law will be applied to the employment contract, ensure you comply with it. If in doubt, seek legal advice.

Please note: Case law is reported as correct and current at time of publishing. Be aware that cases in lower courts may be appealed and decisions subsequently overturned.